GUANGZHOU (Fund China) – It is announced that the Tianhong Enhanced Balanced Fund will open its IPO at Jan. 7, with a overall scale 7 billion shares in the ceiling followed the split declared scale taking the ICBC, Industrial Bank, Postal Savings Bank of China and some other designated brokes as its underwriters.

It is learnt that the Tianhong Enhanced Balanced Fund earns a widespread attention and an active IPO since its split at Oct.11,2007. the asset scale is about 6.5 billion shares at present but with a stable growth.. Accordinig to the Tianhong Asset Management relevant sources, the reason for choosing this time to open its IPO is that one side, from the demand of the investors, and the other side,based on a remained optimistic attitude towards A share market at 2008.

The chief director of Tianhong Asset management, TongGuolin said, there is still a large space for RMB appreciation although a certain adjustment occursed due to the worry of United States economic recession and the domestic macro economic control policy. The annual exchange rate of Rmb to US dollars rose 6.9%, double against the 2006 exchange rate. It is expected that the 2008 RMB appreciation will remain in a high level and the outstanding investment value in banking, real estate etc. is quite obviously. China’s 2008 macro economic environment will continue to be in good posture. And the listed corporations are hopeful to remain high growth. The continual expansion of trading surplus and the liquidity brought by hot money injection will boost the A share’s growth.

TongGuolin also pointed out that, considering synthetically the active factors as the RMB appreciation speeding up, the Olymipcs and the negative impact of the slowdown in US economy to the exporting industries,Tianhong Enhanced Balanced Fund’s next investment field will be in the consumption industries that is with a confirmed growth such as retail, food and beverage, medicine and biology, advertising media, tourism, hotels etc. or the industries that is benefited from the RMB appreciation such as financial, real estate, tourism, hotel as represented.

Copyright Fund China 2009.

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